Announcing its Q3 2023 results earlier this month, the company also increased its annual sales and profit growth forecasts for the third time this year as consumers continue snacking on chocolates and baked snacks despite price increases.
The US confectionery giant now projects organic net revenue for the entire year to grow 14% to 15%, hiking it from a prior expectation of more than 12% growth. It also raised its adjusted profit forecast, and expects it to grow 16% on a constant currency basis from an earlier view of a 12% rise.
“We delivered strong third-quarter results that reinforce the durability of our categories, strength of our brands and geographies, and consistency of our execution. All regions delivered strong revenue growth with double-digit profitability growth, underpinned by strong volume/mix performance,” said Dirk Van de Put, Chairman and Chief Executive Officer.
“We believe the best remains ahead as we strengthen and reshape our portfolio, substantially reinvest in our iconic brands, and continue developing best-in-class capabilities in key enablers such as digital and revenue growth management to further drive high-quality, sustainable growth for years to come. Our strong year-to-date performance and category attractiveness provide confidence to again raise both our net revenue and earnings outlook for the year.”
The company said it expects momentum to recover in Europe after a compromise on prices with consumers after it faced some pushback at supermarket checkouts on increases implemented earlier this year.
Earlier, Mondelēz International also announced that it has signed a Memorandum of Understanding (MoU), with Cote d’Ivoire’s Ministry of Women, Family, and Children, to strengthen joint efforts on child protection via the company’s cocoa sustainability programme Cocoa Life to work towards a shared vision of a child labour free cocoa sector.
The MoU reaffirms the company’s continued efforts in public-private collaboration and ambition to scale up Cocoa Life in alignment with national strategies to help tackle systemic issues in the cocoa supply chain.
The company recently announced the next phase of its 10-year-old Cocoa Life programme, backed by an additional $600 million through 2030, bringing the total investment since the start of the programme to US$1 billion.
In this next phase, the goal is to increase cocoa volume at scale and work with about 300,000 farmers by 2030. With this investment, Mondelēz International said it aims to drive smart innovation and ‘catalyze sector collaboration’ to help address systemic environmental and human rights challenges.